Delaware has long been the premier location for corporations because of specific advantages:


  • EASY, FAST INCORPORATION
  • LOW COST
  • NO STATE INCOME TAX IF THE CORPORATION IS NOT DOING BUSINESS IN DELAWARE
  • NO SALES TAX
  • NO PERSONAL PROPERTY TAX
  • NO INTANGIBLE PROPERTY TAX
  • Most Delaware corporations can be formed within minutes and documents are available within 24 to 48 hours.
  • Incorporation costs are low.
  • Service from the State of Delaware is fast and efficient.
  • One person can be the only Officer, Director, and Shareholder.
  • No minimum amount of capital is required.
  • Delaware state income tax is not levied on corporations which are not doing business in Delaware.
  • Annual franchise tax is low (minimum is $175 tax, plus $50 filing fee, total $225).  LLCs pay $300 annually.
  • Officers and Directors can be indemnified, limiting their personal liability.
  • Corporate books and records may be kept anywhere in the world.
  • Non-resident shareholders pay no Delaware tax on shares.
  • Shareholders are protected by takeover statue, which limits abusive hostile takeover tactics.
  • Directors do not need to be shareholders.
  • Delaware corporation law has well-established legal precedent*.
  • Delaware courts are respected nationwide for their expertise in corporate matters.
  • Voting provisions requiring greater-than-majority approval may be enacted.
  • Delaware  allows for conversion of corporate entities - LLCs can convert into corporations and corporations can convert into LLCs!
  • Liberal choice of corporate name provisions and ease of reserving corporate name.
  • Corporation may pay dividends from profits and surplus.
  • Shareholders, directors and/or committee members may act by unanimous written consent in place of formal meetings.
  • Directors may be given the power to make and alter by-laws.
  • Corporation may hold stocks, bonds or securities of other corporations, real and personal property, within or outside the state, with no limitation as to amount.
  • Different kinds of business may be carried on in combination.
  • Corporation may fix quorum of board of directors -- not less than one-third of the whole board; two if only two shareholders; one if only one shareholder.
  • Voting trusts and voting agreements may be created.
  • Generally, stockholder liability is limited to stock held in the corporation.
  • Delaware law includes Close Corporation provisions.
  • Classes of stock may be issued in series.

* The Delaware Court of Chancery is a court of corporate and business expertise and excellence admired around the world and is the key reason why more than half of all Fortune 500 companies are Delaware Corporations!


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